Analysis on Handicraft Industries

Analysis on Handicraft Industries

2. It is with pride and pleasure that we, place before the Company, the Report on
“Handicrafts”. We have tried our best to cover all the aspect of the Handicraft Industry and
make the Report error free.

While preparing the project report we have referred the website of Ministry of Textile,
Department of Handicrafts and various other sources available over the internet to collect
the authenticated and correct data and also referred the various acts applicable to
handicraft business and rules made thereto.

The important features of the report are as follows:
 The report has been written in lucid and simple language and conscious efforts
have been made to explain the evolution of the Handicraft Industry and the motive
behind the same.
 It covers almost all the points of the Industry in a well-structured manner and the
laws and regulations applicable.
 Tables, diagrams etc have been included to give exact understanding of the Act.

We look forward to the comment & suggestions from your side, if any.

3. 1.INTRODUCTION
2.SECTORS AND PRODUCTS
3.SCHEMES OF HANDICRAFT
4.APPLICABLE LAWS
5.INTERNATIONAL STANDARD CODE OF CONDUCTS
6.IMPORTANT INTERNATIONAL REGULATIONS
7.MARKETING FACILITIES AND RECENT MARKET TRENDS
8.CONCLUSION

4. The rising appreciation for Indian handicrafts by consumers in developed countries,
widespread novelty seeking, cheap and skilled labour and large supply of timber species
has made the Indian wood industry one of the important suppliers of handicrafts to the
world market. This industry provides employment to over five million artisans and
supports and provides major opportunity of employment to rural sections. In addition to
the high potential for employment, the sector is economically important from the point of
low capital investment, high ratio of value addition, and high potential for export and
foreign exchange earnings for the country.

The land of Rajasthan boasts not only of its rich cultural and historical legacies, but also for
its outstanding handicrafts. These splendid handicrafts of Rajasthan are popular
throughout the world for their unique quality. Every corner of the state reveals a different
tale of Rajasthan handicrafts. Rajasthan is a major centre of all forms of handicrafts
whether it is jewelry, marble work, leather work or textile of wooden work. One can find
from the history of Rajasthan that the Kings were patrons of art and handicraft. History
reveals that the kings have also encouraged the craftsmen in promoting the art and craft.

Handicrafts constitute an important segment of the decentralized/unorganized sector of
our economy. Originally, started as a part- time activity in rural areas, it has now
transformed in a flourishing economic activity due to significant market demand over the
years. Handicrafts have big potential as they hold the key for sustaining not only the
existing set of millions of artisans spread over length and breadth of the country, but also
to increase large number of new entrants in the crafts activity. Presently, handicrafts are
contributing substantially in employment generation, and exports. The Handicrafts sector
has suffered from basic problems of being in the unorganized sector with additional
constraints like lack of education, capital, poor exposure to new technologies, absence of
market intelligence and poor institutional framework. These problems have been further
aggravated due to lack of proper care on the welfare of the artisans, producer and other
stakeholders in the chain. In order to address the welfare needs, many schemes has been
envisaged. The brief discussion of the schemes has been given in this project report.

In this project report details regarding the handicraft industries, sectors, applicable laws,
various welfare schemes, process of get registered at various forums have been discussed.

5. The handicraft industry has been categorizes into following sectors:
 Cotton Sector
 Jute Sector
 Sericulture Industry
 Wool and Woollen Sector
 Man Made Fabric/ Filament Yarn
 Technical Textile
 Clothing and Textile Export
 Education (Textile/ Fashions)
 Integrated Skill Development
 Research and Development

The craftsmen use different media to express their originality. The diversity of the
handicrafts is expressed on textiles, metals – precious and semi-precious, wood, precious
and semi-precious stones, ceramic and glass. The Indian handicrafts industry covers a wide
range of lifestyle and utility products, such as:
 House Ware
 Decorative Items & Gifts
 Home Textiles
 Furniture
 Home Accessories
 Cane Products- Bamboo & Eco Friendly Products
 Candles & Incense Sticks
 Fashion Jewelry
 Accessories & Bags, etc

6. The Handicrafts Sector is able to provide substantial direct employment to the artisans and
others engaged in the trade and also employment to many input industries in recognition
of the above facts, the Government of India set-up an autonomous All India Handicrafts
Board in 1952.The promotion of handicrafts industries is the primary responsibilities of
State Governments. However, the Office of the Development Commissioner [Handicrafts]
has been implementing various departmental schemes at the central level to supplement
state’s activities in the handicrafts sector besides the new thrust areas. The Office of the
Development Commissioner [Handicrafts] functions under Ministry of Textiles for
promotion and exports of handicrafts. The office is headed by Development Commissioner
[Handicrafts]. It advices the Government of India on matters relating to the Development
and Exports of Handicrafts and assists the State Government in Planning and Executing
Development Schemes for handicrafts.

The Office of Development Commissioner (Handicrafts) is responsible for formulation and
implementation of several schemes for the development of handicrafts at the Central
level. This office also provides necessary guidance to the State Government for
formulation and implementation of their promotional programmes. A necessity,
therefore, arises to have a regular system of feedback of economic, social, aesthetic and
promotional aspects of various crafts and artisans in this sector.

Schemes of the Office of Development Commissioner (Handicrafts), Ministry Of Textiles,
Government of India.

BABASAHIB AMBEDKAR HASTSHILP VIKAS YOJANA

Objectives
This scheme aims at promoting Indian handicrafts by developing artisans clusters into
professionally managed and self-reliant community enterprises on the principles of
effective member participation and mutual cooperation. This thrust of the scheme is on a
projected need based integrated approach for sustainable handicrafts development
through participation of craftsperson leading to their empowerment.

Components
 Social interventions (Diagnostic survey and formulation of project plan, Mobilization of
artisans)
 Technological interventions (Training of trainers, skill upgradation, Development and
supply/dissemination of modern improved tools, equipments etc., Design and
technological upgradation, Revival of languishing crafts, CFC etc.)
 Marketing interventions (Marketing events, Marketing infrastructure, Publicity and
services, International marketing).
 Financial interventions (Margin money)

7. Eligibility
Financial assistance under this scheme can be given to/through the Reputed
NGOs/Cooperatives/Apex cooperative societies /Trusts /COHANDS /EPCH /CEPC /MHSC
/IICT / NCDPD/NIFT/NID/University Deptt., DRDA/NISSIET, EDIs, Central/State Handloom
and Handicrafts Development Corporations and other related Govt.
Corporations/Agencies, Federation of NGOS/SHGs Consortium, organization registered
under Section 8 of the Companies Act, 2013 (erstwhile Section 25 of the Companies Act,
1956) etc. registered under proper statute, for sustainable development of identified craft
clusters.

To avail the benefit of this scheme, organization have to submit a project report
providing detailed list along with the prescribed Performa.

BIMA YOJANA FOR HANDICRAFTS ARTISANS

Objectives
“Bima Yojana” for Handicraft Artisans is in operation since 2003-04 with the objective of
providing life insurance Protection to Handicraft Artisans which has two components
namely “Janshree Bima Yojana” & “Add-on Group Insurance Scheme” for male as well as
female age group of 18 -60 years. The scheme is being implemented through Life Insurance
Corporation of India.

Under the Janshree Bima Yojana the total premium is Rs. 470/- per beneficiary per annum.
This premium is shared by the Ministry (Rs. 290/-), by the LIC (Rs. 100/-) and the remaining
Rs. 80/- contributed by the handicraft artisans . In addition to covering risk for
Death(Rs.20,000/- Natural death, Rs. 50,000/-Accidental death) & Disability(Rs. 25,000/-),
the coverage includes Educational Assistance @ Rs. 300/- per quarter per child for two
children of the handicraft artisans for school education of standard IX to XII.

Under The “Add- on Group Insurance Scheme”, the beneficiary artisans and the
Government of India equally share the total premium of Rs. 180/- per annum. This
component enhanced coverage for Death (Rs. 50,000/- for accidental death) & Disability(
Partial- Rs. 25,000/- Permanent Rs. 50,000/-).

Under the scheme up to 31 st March, 2006, 1,96,507 artisans have been covered against
the target of 2 lakhs artisans, 324 claims have been settled involving an amount of Rs.
64,80,000/-. Besides an amount of Rs. 18,31,200 has been disbursed by the LIC under the
Shiksha Sehyog Yojana.

Eligibility
All crafts persons, whether male or female, between the age group of 18-60 years will be
eligible to be covered under the BIMA YOJANA FOR HANDICRAFTS ARTISANS.

CREDIT GUARANTEE SCHEME

Objectives
The objective of the scheme is to alleviate the problems of collateral security or third party

8. guarantee and remove implements to flow of credit in the handicraft sector.

Under this scheme credit guarantee cover of upto 75% of the credit facility is provided
subject to maximum of Rs. 18.75 lakhs for the loan upto Rs. 25 lakhs.

An amount of Rs. 5.10 Crore has been placed with 7 Regional Coordinator Banks towards
guarantee fee. This is expected to facilitate a credit of Rs. 222.50 crore to cover target of
94,000 artisans during 2006-07.


Eligibilty
The handicrafts artisans/ manufacturers/ producers who are engaged in manufacturing
activities in Handicrafts Sector are covered under Credit Guarantee Scheme.

TRAINING & EXTENSION
The main objective of this scheme is to enhance the capacity building artisans, NGO etc.
and to meet the administrative expenditure of Carpet Weaving Training Centre in J&K and
23 cane & Bamboo departmentally run training centres.

Components
Incurring expenditure for conducting field visits/study tours in India and abroad to give
exposure to designers and master craftsperson working in handicrafts sector with a view
to enable them to learn and adopt best practices prevailing for promotion and
development of handicrafts sector in India. Financial Assistance for capacity building and
to conduct awareness-cum-training workshops/seminars for artisans, NGO's etc. in various
spheres related to handicraft sector.

Eligible Organizations
The scheme shall be implemented departmentally as well as through reputed research
institutions, registered organisations/public sector units, experts etc. specialising in
concerned areas.

RESEARCH & DEVELOPMENT

Objectives
The main objective of the scheme is to have a regular system of feedback of economic,
social, aesthetic and promotional aspects of various crafts and artisans in this sector and
to address the issues arising out of WTO stipulation case.

Components
The components include:
 Surveys/Studies of specific crafts for which adequate information is not available,
 Problems relating to availability of raw material, technology, design, common facilities,
etc.,
 Living and working conditions of artisans in specific areas or crafts,

9.  Market evaluation studies of specific crafts for either domestic or overseas markets,
 Techno-economic feasibility studies and post evaluation of the various promotional
projects or programmes undertaken in the handicrafts sector,
 Areas requiring special study for uplift of the weaker sections viz. Scheduled castes and
Scheduled Tribes,
 Financial assistance for preparation of leagal, para legal, standards, audits and other
documentation leading to labelling/certification.
 Financial assistance to organizations for evelving, developing a mechanism for
protecting crafts, design, heritage, historical knowledge base, research and
implementation of the same enabling the sector/segment to face challenges for
utilizing the opportunities of post WTO regime,
 Financial assistance for taking up problems/issues relating to brand building and
promotion of Indian Handicrafts and
 Any other problems/issues of specific nature relating to handicrafts sector.

Eligibility
Assistance under the scheme will be extendable to an organization registered under any
of the statutory Acts (Companies Act 1956, Societies Registration Act 1860, Cooperative
Act etc.) or registered with any bodies like DCSSI, Office of the Development Commissioner
(Handicrafts), etc. or universities and recognized research institutions. Generaly, such
assistance would not be etendable to any particular individual unless he is an eminint
scholar or a person associated with promtion of handicrafts for a long time.

EXPORT PROMOTION

Objectives
The objective of the scheme is to promote export of handicrafts including hand knotted
carpets and floor covering from Indian. Initiatives such as identification of handicrafts
concentration area for development of exportable products, undertaking research and
studies in order to identify markets abroad, taste and fashion, prevailing designs etc.,
participation in exhibitions etc. and addressing the issues emerging out of the liberalized
and post WTO era would be undertaken under this scheme.

Components

 Product Development
 Publicity and Marketing
 Social and other welfare measures

Eligibility

10. The financial assistance under the scheme is extended to the Central/State Handicrafts
Corporations, Council of Handicrafts Development Corporation (COHANDS), Apex Coop.
Societies, NGOs registered under Society's Act Trusts, Section 8 Companies and such other
organizations engaged in the development and promotion of handicrafts sector registered
under any other Statutory Acts, EPCH, CEPC, NCDPD, IICT, India Exposition Mart,
Registered Handicrafts exporters, reputed designers/technologists approved by
CEPC/EPCH/Office of the DC (H).

DESIGN & TECHNOLOGY UPGRADATION

Objectives
Design & Technology Upgradation scheme aims at upgradation of artisans skills,
improvement and diversification of products, development of new design of prototypes,
supply of improved/modern equipments to the craftpersons, revival of rate crafts to
preserve the traditional heritage, preservation of traditional art & crafts of high aesthetic
value, etc.

Components
 Financial assistance to Institutes like IICT, MHSC, NCDPD etc.
 Activities of RDTDCs. - DTC in CArpets in J & K and Cane & Bamboo in the country.
 Financial Assistance to Shilp Guru (Heritage Masters).
 Financial Assistance for training under Guru Shishya Parampara.
 Financial assistance for training the trainer.
 Financial assistance for Development supply/Dissemination of Modern Improved Tools,
Equipments, Products and Process Technologies.
 Assistance for Design & Technology Development Project.
 Assistance for Integrated Design & Technology Development Project.
 Documentation Preservation and Revival of old and rare and Languishing crafts.
 National Award for outstanding contribution in Designs in Handicrafts sector.
 Financial Assistance for Institutions to be set-up under the State Initiatives.
 Financial Assistance for setting up of museum or for already existing museum.

Eligibility
Financial assistance under the Design and Technology Upgradation Scheme is extended to
the Central/state Handicrafts Corporation, Apex Cooperative Societies, NGOs registered
under Societies Act, Trust, Handicrafts Societies, EPCH, CEPC, COHANDS, NCDPD, MHSC,
IICT, Crafts Council of various States, NID, NIIFT, IIT and other reputed institute dealing in
handicrafts, renowned designers, technologist, Shilp Gurus National Awardees, Master
craftpersons, experts having experience in handicrafts.

MARKETING SUPPORT & SERVICES

11. Objectives
The main objective of this scheme is to create awareness of Indian Handicrafts among the
masses by organising a number of marketing events in big and small cities, to provide
financial assistance to state Handicrafts Development Corporations, Apex Cooperatives
and prominent NGOs for opening new Emporia at suitable places to enable the
craftpersons to have permanent sales outlets for their products, to popularise and
publicise handicrafts sector, to provide services in the form of entrepreneurship
development programme etc.


Components and Sub-Components
 Marketing Events (Holding of National Handicrafts Expo, Holding of Crafts Bazars and
Holding of Exhibitions)
 Marketing Infrastructure (Setting up of Urban Haat/crafts specific Haat/Local Haats,
Opening of new exporia/renovation expansion of existing emporia, Setting up of Craft
Development Centres)
 Marketing Services (Holding of Marketing Workshops at National/State/Local Levels
programme and Enterpreneurship Development)
 Publicity (Internal Publicity)

Eligibility: Grant-in-Aid
The financial assistance under the scheme shall be extended to the Central/State
Handicrafts Development Corporations, COHANDS, Apex Societies, NGO's registered
under Society Act, Trusts, Section 8 Companies and such other organization engaged in the
development and promotion of handicrafts sector registered under or any other statutory
Acts.

12. 1. The Apprentices Act, 1961
The objective of this Act is promotion of new manpower skills as well as improvement/
refinement of existing skills through theoretical and practical training. The act provides
that a person cannot be an apprentice in any designated trade unless he has not attained
14 years of age and satisfies such standard of education and physical fitness as prescribed.
The Act further provides the rate of compensation and other provisions specific to the
employment of Apprentices/ Trainees.

2. The Contract Labor (Regulation & Abolition) Act, 1970
The Contract Labor Act was enacted to prevent exploitation of contract labor and also to
introduce better conditions of work. The Act provides for regulation and abolition of
contract labor. The underlined policy of the Act is to abolish contract labor wherever
possible and practicable. The Act provides for regulated conditions of work and
contemplates progressive abolition to the extent contemplated under the Act. The Act
provides for constitution of a Contract Labor Advisory Board to advise the Government on
such matters arising out of the administration of this Act as may be referred to it and to
carry out other functions assigned under the Act.

3. The Child Labor (Prohibition and Regulation) Act, 1986
The Act addresses itself to the issue of Child Labor. This Act prohibits the engagement of
children below the age of 14 years in certain employments as well as regulates their
conditions of work. The salient features of the act include but are not limited to prohibiting
employment of children across certain occupations and processes, prohibition of children
from working between 19:00 hours till 08:00 hours on any given day, prohibition of
children working for more than a period of 3 hours without a 1 hour break.

4. The Employees’ Provident Fund & Misc. Provisions Act, 1952
This act is applicable to every establishment which is engaged in any industry specified in
Schedule I of the Act or in which 20 or more persons are employed. Any establishment
employing even less than 20 persons can be covered voluntarily u/s 1(4) of the Act.
Employees covered enjoy a benefit of Social Security in the form of a non-revocable
financial fund to which employees and employers contribute equally throughout the
covered persons' employment period. This sum is payable normally on retirement or
death.

5. The Employees' State Insurance Act, 1948

13. The Employees' State Insurance Act, 1948 provides benefits to the workers in case of
sickness, maternity and employment injury including occupational diseases, through a
contributory fund. The Act applies to all factories other than seasonal factories, using
power in the manufacturing process and employing 10 or more persons and factories not
using power but employing 20 or more persons. The Act contains enabling provisions
under which the 'appropriate authorities' are empowered to extend the provisions of the
Act to other classes of establishments - industrial, commercial, agricultural or otherwise.
Under this provision, most of the State Governments have extended the provisions of the
Act to - Shops, hotels, restaurants, cinemas including preview theatres, road motor
transport agencies, newspapers establishments etc. employing 20 or more persons.

6. The Factories Act, 1948
The Factories Act is a social legislation which has been enacted for occupational safety,
health and welfare of workers at work places. This legislation is enforced by Inspectors of
Factories, Dy. Chief Inspectors of Factories who work under the control of the Labor
Commissioner of Respective State Governments. This act is specific to the manufacturing
industry and provides for numerous requirements under health and safety standards as
well as regulatory requirements of approval and licenses. The act also regulates the wages
and compensation of workers. Enacted in 1948, this act has undergone several
amendments in order to meet the manufacturing industry's ever changing requirements
and continues to evolve till date.

7. The Industrial Disputes Act, 1947
The Industrial Disputes Act was enacted in 1947. Its provisions are based on the Trade
Dispute Act, 1929. It provides for establishment of the Industrial Tribunals and the Works
Committees with the objective of settling industrial disputes. These committees are to be
constituted of workers' representatives with the intent to ease the communication process
and promote harmonious relations between employer and employee.

8. The Industrial Employment (Standing Orders) Act, 1946
This Act makes it obligatory for employers of an industrial establishment where 50/ 100 or
more workers are employed to dearly define the conditions of employment, by way of
standing orders and to ensure awareness to the employees. The employer is required to
prepare a draft standing order, which he proposes to adopt and submit the same to the
Certifying Officers for certification. The employer is required to act in conformity with the
certified standing orders in dealing with the day to day affairs. The Certified Standing
Orders have the force of the law similar to any other enactment.

14. 9. The Maternity Benefit Act, 1961
The aim of the act is to protect motherhood by providing appropriate paid rest period to
pregnant women employees. Women are eligible for maternity benefit when she is
expecting a child and has worked for her employer for at least 80 days in the 12 months
immediately preceding the date of her expected delivery.

10. The Minimum Wages Act, 1948
The Minimum Wages Act 1948 provides minimum statutory wages for scheduled
employments with a view to obviate the chances of exploitation of labor through payment
of very low and sweating wages. The Act also provides for the maximum daily working
hours, weekly rest day and compensation at premium rate for overtime hours worked. The
State Governments have been empowered to decide wages for different classes of
employees -skilled, unskilled, clerical, supervisory, etc. employed in any Scheduled
employment and to review and revise the same from time to time. The Act provides that
for any scheduled employment in respect of which minimum rates of wages have been
fixed, the Government shall decide the number of working hours constituting a normal
working day, inclusive of one or more intervals, provide for a rest day with wages in every
period of 7 days and provide for payment for work on a rest day at a rate not less than the
overtime premium rate of compensation.

11. The Payment of Bonus Act, 1965
The Payment of Bonus Act imposes statutory liability upon the employers of every
establishment covered under the Act to pay bonus to their employees. It further provides
for payment of minimum and maximum bonus and linking the payment of bonus with the
production and productivity. The Act applies to every factory where 10 or more workers
are working and every other establishment in which 20 or more persons are employed, on
any day of an accounting year (April 1st to March 31st).

12. The Payment of Gratuity Act, 1972
This Act provides for the payment of gratuity to workers employed in every factory, shop
& establishments or educational institution employing 10 or more persons on any day of
the preceding 12 months. A shop or establishment to which the Act has become applicable
shall continue to be governed by the Act even if the number of persons employed fall
below 10 at any subsequent stage. All the employees irrespective of status or salary are
entitled to the payment of gratuity on completion of 5 years of service. In case of death or
disablement there is no minimum eligibility period.

13. The Payment of Wages Act, 1936

15. This Act has been enacted with the intention of ensuring timely payment of wages to the
workers and for payment of wages without unauthorized deductions. The salary in
factories/establishments employing less than 1000 workers is required to be paid by 7th
of every month and in other cases by 10th day of every month. A worker, who either has
not been paid wages in time or an unauthorized deduction has been made from his/her
wages, can file a claim either directly or through a Trade Union or through an Inspector
under this Act, before the Authority appointed under the Payment of Wages Act. The
power for hearing and deciding claims under this Act has been vested with the Presiding
Officers of a Labor Courts.

14. The Trade Unions Act, 1926
The Act provides for registration of trade unions which include associations of employers.
The Act also contains certain restrictions, protections and privileges to registered Trade
Union. The Act provides that any 7 or more employees acting as an association may by
complying with the provisions of this Act, apply for registration as a Trade Union under this
Act. Recently the Act has been amended and a proviso has been added to the section
relating to the registration of trade unions which provides that no trade union of workmen
shall be registered unless at least 10% or 100 workmen whichever is less, engaged or
employed in the establishment or industry with which it is connected are the members of
such trade union on the date of filing the application for registration.

15. The Workmen's Compensation Act, 1923
This Act provides workmen and/or their dependents financial relief in case of accidents
arising out of and in the course of employment and causing either death or disablement
of workmen. The Act applies to numerous as listed in Schedule II of the Act. Every
employee, including those employed through a contractor, who is engaged for the
purposes of an employer's business and who suffers an injury in any accident arising out
of and in the course of his employment, shall be entitled for compensation under the Act.

16. The Foreign Exchange Management Act, 1999
If the company involves itself in import and export of the handicrafts products or deals in
foreign currency, then have to company with the provisions of the FEMA and the RBI.

17. The Companies Act, 2013
The company have to comply with the provisions of the Companies Act, 2013, the Rules
made thereto, Secretarial Standard, and other related provisions.

16. 1. Labor and Human Rights
The human rights of workers must be upheld, and they must be treated with dignity and
respect as understood by any international community.

2. Anti-discrimination
There must not be any discrimination against any worker based on race, color, age, gender,
sexual orientation, ethnicity, disability, religion, political affiliation, union membership,
national origin, or marital status in hiring and employment practices such as applications
for employment, promotions, rewards, access to training, job assignments, wages,
benefits, discipline, and termination. In addition, workers/ potential workers must not be
required to undergo medical tests that could be used in a discriminatory way except where
required by applicable laws or regulations or prudent for workplace safety.

3. Fair Treatment
Business owners must commit to a workplace free of harassment Workers must not be
threatened with or be made subject to harsh or inhumane treatment, including but not
limited to sexual harassment, sexual abuse, corporal punishment, mental coercion,
physical coercion, verbal abuse, or unreasonable restrictions on entering or exiting
company-provided facilities. Harassment and unlawful discrimination in the workplace
must be prohibited.

4. Prevention of Involuntary Labor and Human Trafficking
Business owners must not traffic in persons or use any form of slave, forced, bonded,
indentured, or prison labor. This includes the transportation, harboring, recruitment,
transfer, or receipt of persons by means of threat, force, coercion, abduction, fraud, or
payments to any person having control over another person for the purpose of
exploitation. All work must be voluntary and workers must be free to leave work or
terminate their employment by providing reasonable notice. Workers must not be
required to surrender any government-issued identification, passports, or work permits as
a condition of employment. It must be ensured that third-party agencies providing workers
are compliant with the provisions of the applicable laws. The contracts for both direct and
contract workers must dearly convey the conditions of employment in a language
understood by the worker.

5. Prevention of Underage Labor
Child labor is strictly prohibited. No business owner shall employ children. The minimum

17. age for employment or work shall be 15 years of age. This Code does not prohibit
participation in legitimate workplace apprenticeship programs that are consistent with ILO
standards.

6. Juvenile Worker Protection
Workers who are above the legal minimum age for employment but are yet to attain
adulthood may be employed, on the condition that the health, safety and morals of such
young persons concerned are fully protected and that such young persons have received
adequate specific instruction or vocational training in the relevant branch of activity.

7. Working Hours
Except in emergency or unusual situations, a work week shall be restricted to 60 hours,
including overtime, and workers must be provided with at least one day of rest once every
seven days. All overtime shall be voluntary. Under no circumstances shall work weeks
exceed the maximum permitted limit prescribed under the applicable laws.

8. Wages and Benefits
All workers must be paid at least the minimum wage prescribed by the applicable laws and
be provided with all legally mandated benefits. In addition to their compensation for
regular hours of work, workers shall be compensated for overtime hours at such premium
rates as may be prescribed by the applicable laws. There must not be any deductions from
wages as a disciplinary measure. All workers must be provided with leaves and holidays
consistent with the applicable laws. All workers must be paid in a timely manner and
should be clearly aware of the basis on they are being paid.

9. Freedom of Association
Business owners must respect the right of workers to associate freely with, form, and join
workers7 organizations of their own choosing, seek representation, and bargain
collectively, as permitted by and in accordance with applicable laws and regulations. There
must not be any discrimination with respect to employment based on union membership
and employment must not be subject to the condition that the worker relinquish union
membership or agree not to join a union.

10. Occupational Injury Prevention
Physical hazards must be eliminated wherever possible. Where physical hazards cannot be
eliminated, appropriate engineering controls such as physical guards, interlocks, and
barriers must be provided. Where appropriate engineering controls are not possible,
appropriate administrative controls such as safe work procedures must be established. In

18. all cases, workers must be provided with appropriate personal protective equipment.
Workers must not be disciplined for raising safety concerns and shall have the right to
refuse unsafe working conditions without fear of reprisal until their concerns have been
addressed.

11. Prevention of Chemical Exposure
Business owners must identify; evaluate, and control worker exposure to hazardous
chemical, biological, and physical agents. Chemical hazards must be eliminated wherever
possible. Where chemical hazards cannot be eliminated, appropriate administrative
controls such as safe work procedures must be established. The concerned workers must
be provided with appropriate personal protective equipment.

12. Emergency Prevention, Preparedness, and Response
Business owners are expected to anticipate, identify, and assess emergency situations and
minimize their impact by implementing emergency plans and response procedures,
including but not limited to emergency reporting, worker notification and evacuation
procedures, worker training and drills, appropriate first-aid supplies, appropriate fire
detection and suppression equipment, adequate exit facilities, and recovery plans.

13. Occupational Safety Procedures and Systems
Business owners must establish procedures and systems to manage, track, and report
occupational injury and illness. Such procedures and systems should encourage worker
reporting, classifying and recording injury and illness cases, followed by investigating cases
and implementing corrective actions to eliminate their causes, provide necessary medical
treatment, and facilitate the workers' return to work.

14. Ergonomics
Business owners must identify, evaluate, and control worker exposure to physically
demanding tasks, including manual material handling, heavy lifting, prolonged standing,
and highly repetitive or forceful assembly tasks.

15. Awareness and Education of Health & Safety Procedures & Standards
In order to foster a safe work environment, Business owners shall provide workers with
appropriate workplace health and safety information and training, including but not
limited to written health and safety information and warnings, in the primary language of
the workers.

16. Worker Health and Safety Committees

19. Workers must be encouraged to create and participate in worker health and safety
committees to enhance ongoing health and safety education and to encourage worker
input regarding health and safety issues in the workplace.

17. Hazardous Substance Management and Restrictions
Business must comply with the applicable laws and regulations prohibiting or restricting
the use or handling of specific substances. To ensure safe handling, movement, storage,
recycling, reuse, and disposal, they shall identify and manage substances that pose a
hazard if released to the environment and comply with applicable labeling laws and
regulations for recycling and disposal.

18. Solid Waste Management
Business owners must manage and dispose of non-hazardous solid waste generated from
operations in accordance with the procedures prescribed under the applicable laws and
regulations.

19. Wastewater and Storm Water Management
Business owners must monitor, control, and treat wastewater generated from operations
before discharge as required by applicable laws and regulations. They shall take
appropriate precautions to prevent contamination of storm water runoff from their
facilities.

20. Air Emissions Management
Business owners shall characterize, monitor, control, and treat air emissions of volatile
organic chemicals, aerosols, corrosives, particulates, ozone-depleting chemicals, and
combustion by- products generated from operations, as required by applicable laws and
regulations, before discharge



1. EU Timber Regulation
Since March 2013 the requirements of the EU Timber Regulation has come into force. This
new legislation prohibits placing timber on the EU market if it was illegally harvested. To
achieve this, it sets out procedures which those trading timber within the EU must put in
place to minimize the risk of illegal timber being sold.

2. Vriksh

20. An indigenous Certification of Due Diligence regarding procurement of wood from legal
sources helps in providing certification based on the standards formulated keeping in view
the challenges faced by the wooden handicrafts exporters. Vriksh certification ensures that
products come from well managed forests that provide environmental, social and
economic benefits and the wooden handicrafts are made from legally harvested timber.
Export Promotion Council for Handicrafts has been nominated by DGFT as the nodal
agency to provide certificate on due diligence in procuring wood from legal sources in case
of request made by the foreign buyers or any other agency.
3. The Oeko Tex Certificate
The Oeko-Tex certificate is limited to companies in the textile and clothing industry and
gives proof of the human and ecological safety of textiles. The tests for harmful substances
are based on a test catalogue which includes the list of mandatory tests according to Oeko-
Tex and the limit values of substances used in the production of textiles. When the Oeko-
Tex certificate is issued by the relevant institute or certifying body, it confirms that the
requirements of the Oeko-Tex Standard 100 and of a common product class have been
successfully tested.

4. The U.S Lacey Act
On May 22, 2008, the U.S. Congress passed a groundbreaking law banning commerce in
illegally sourced plants and their products including timber and wood products. Now the
Lacey Act sets a groundbreaking precedent for the global trade in plants and plant
products, acknowledging and supporting other countries' efforts to govern their own
natural resources and putting in place powerful incentives for companies trading in these
commodities to do the same. This legislation requires importers to declare the country of
origin of harvest and species name of all plants contained in their products.

5. REACH
REACH is the Regulation on Registration, Evaluation, Authorisation and Restriction of
Chemicals. It entered into force on 1st June 2007. It streamlines and improves the former
legislative framework on chemicals of the European Union (EU). The main aims of REACH
are to ensure a high level of protection of human health and the environment from the
risks that can be posed by chemicals, the promotion of alternative test methods, the free
circulation of substances on the internal market and enhancing competitiveness and
innovation. REACH makes industry responsible for assessing and managing the risks posed
by chemicals and providing appropriate safety information to their users. In parallel, the
European Union can take additional measures on highly dangerous substances, where
there is a need for complementing action at EU level.

21. 6. Toxic Substances Control Act of 1976 (United States Environment
Protection Agency)
Toxic chemicals and their impacts through manufacture, use, and disposal are generally
regulated under the Toxic Substances Control Act (or TSCA) of 1976. TSCA authorizes EPA
to, under certain conditions, require testing of chemicals by manufacturers; to collect
information on studies indicating human health risks or exposures of concern; to collect
data on chemical use (including most recently information on chemical use in products for
children); and to restrict chemicals of high concern.

7. The Federal Hazardous Substances Act (FHSA) of 1960 (United States of
America)
This act requires the labeling of hazardous products that are toxic, corrosive, combustible,
or otherwise hazardous, and that have the potential to c cause substantial personal injury
or illness as a result of reasonably foreseeable handling, use, or ingestion. The Act also
allows the CPSC to ban certain products (called "banned hazardous substances") that are
so dangerous that labeling is not adequate to protect consumers.

8. Children's Toxic Metals Act 2010 (United States of America)
The H.R 4428: Children's Toxic Metals Act Bill was proposed to prohibit the manufacture,
sale, and distribution of children's jewelry containing Cadmium, Barium, or antimony in
the United States. The bill requires that any children's jewelry containing the heavy metals
of cadmium, barium, or antimony shall be treated as a hazardous substance under the
Federal Hazardous Substances Act.

9. The Consumer Product Safety Act (CPSA) of 1972 (United States of
America)
This act is an umbrella statute that consolidates federal safety regulatory activity relating
to consumer products within the CPSC. The law defines the authorities of the CPSC
(Consumer Product safety commission) and authorizes the agency to develop standards to
reduce or eliminate unreasonable risks of injury associated with consumer products, to
ban products if there is no feasible safety standard, and to pursue recalls for products that
present a substantial hazard. For example, it specifically prohibits any toy or other article
that is intended for use by children and that contains a hazardous substance if a child can
gain access to the substance.

10. Labeling of Hazardous Arts Material Act (United States of America)
The U.S. Consumer Product Safety Commission (U.S. CPSC) regulation 16 CFR 1500.14
(b)(8)) requires that art materials be evaluated for compliance with the Labeling of

22. Hazardous Art Materials Act (LHAMA) according to the standards of the American Society
of Testing and Materials (ASTM D-4236).

11. C-TPAT
C-TPAT is a voluntary government-business initiative that builds cooperative relationships
that strengthen and improve overall international supply chain and U.S. border security.
C-TPAT is widely recognized as one of the most effective means of providing the highest
level of cargo security through close cooperation with international supply chain
businesses such as importers, carriers, consolidators, licensed customs brokers, and /or
manufacturers. Through this initiative, U.S. Customs and Border Protection (CBP) is asking
businesses to ensure the integrity of their security practices and communicate and verify
the security guidelines of their business partners within the supply chain.

23. The office of DC(H) attempts to address this gap through its Marketing Support Services
scheme which focuses on enhancing the access of artisans and exporters to various
markets and marketing channels along with creating awareness about handicrafts
amongst consumers & public at large both in domestic and international market.

Some of the schemes are as follows:

Assistance for organizing/participation in marketing events in India

In order to promote and Market Handicrafts financial assistance will be provided to
different eligible organizations to organize Gandhi Shilp Bazaars (GSB)/ Crafts Bazar in
metropolitan cities/state capitals/places of tourist or commercial interest/ other places.
This will provide direct marketing platform to the handicrafts
artisans/SHGs/entrepreneaurs from various parts of the country.

Further Shilp bazaars will also be organized at other locations, which will be occasion
specific/ theme specific Craft Bazaars even if not featuring in the roaster if a situation so
arises like in case of major National/international events or other events which are
important but not held annually.

Since the number of Gandhi Shilp Bazars will not be adequate to cater to the marketing
needs of the sector therefore the financial assistance for organizing crafts bazaar will also
be considered for eligible organizations in order to provide maximum marketing
opportunities to the handicrafts artisans and their product.

Duration and Participation:
Duration of 7-10 days and shall accommodate 60-100 stalls.

Eligibility:
The eligible organization includes Central and State Handicrafts Corporations, other
institutions and organizations under central and state governments,
COHANDS/EPCH/CEPC/IICT/MHSC /NCDPD, Apex cooperative Societies and NGOs
(registered under society act/ trust act, etc.)

Financial Assistance and Funding Pattern
The financial ceiling for GSB and Craft bazars is based on classification of towns:
 Class I (cities with population above 5,000,000): INR18 Lakh
 Class II (cities with population between 5,000,000 and 1,000,000): INR 16 Lakh

24.  Class III (cities with population less than 1000000): INR 14 Lakh

Exhibitions

Organising large events with 100 artisans in a cities requires lot of capacity both financially
and logistically on the part of an organization and in the handicrafts sector which is
fragmented and rural in nature finding agency with such large reach among the artisans is
not so easy. Therefore it is proposed to provide financial assistance for smaller marketing
events at local level to provide marketing opportunity to group of artisans from the area.
This will enable continuous availability of marketing platform to the
artisans/entrepreneaurs/SHGs without the limitation of logistics and increase the
penetration of the crafts to all parts of the country.

Duration and Participation:
The exhibitions shall be organized for a period of 5 -7 days with participation from
minimum of 10 and maximum of 50 artisans.

Eligibility
The eligible organization includes Central and State Handicrafts Corporations, other
institutions and organizations under central and state governments, COHANDS,
EPCH,CEPC, NCDPD, Apex cooperative Societies and NGOs (registered under society act/
trust act, etc.)

Financial Assistance and Funding Pattern
The financial ceiling for exhibitions will be based on classification of towns:
 Class I (cities with population above 5,000,000): INR 8 Lakh
 Class II (cities with population between 5,000,000 and 1,000,000): INR7 Lakh
 Class III (cities with population less than 1,000,000): INR 6 Lakh

Hiring of built up space in events organized by other organizations

To enable the artisans to display and sell their products in established fair organized by
Department of Tourism or State and Central Governments and other organizations, an
enabling provision is made for acquiring stalls in fairs for allotment to the artisans.

National Handicrafts Fair

The event will showcase the best of the Indian handicrafts in quality, design and versatility
from across the country. The objective of this new programme is to organize an exclusive
fair for handicraft products in India at a grand scale to increase visibility of the products in

25. domestic market. The program will also benefit entrepreneurs who are unable to
participate in the International fairs due to the high cost.

Duration and Participation
100-300 including artisans/ exporters/ merchandiser/ manufacturer may participate in the
event.

Eligibility:
The eligible organizations include Central and State Handicrafts Corporations, COHANDS,
EPCH, CEPC, NCDPD, TPOs, other institutions and organizations under central and state
governments, Apex cooperative Societies.

Financial Assistance and Funding Pattern
The funding shall be provided to the extent of INR 1.00 Crore maximum for organizing the
event.

Participation in international fairs and exhibition abroad

With a view to promote exports of handicrafts and carpets the financial assistance will be
provided to eligible organizations for participation in international fairs and exhibitions
held in India and abroad.

Folk Craft Festival of India/ Stand Alone Shows/ road shows

The folk craft festival of India/road shows/catalogue shows/thematic exhibitions/stand
alone shows/special events/programmes shall be organized in India and abroad to create
promote the products and create a brand image for Indian handicrafts in international
markets.

Buyer Seller meet in India

The objective of this event is to provide linkages to local artisans to showcase their
products to the major buyers of India ensuring integrated and inclusive development of
the Indian handicrafts.The meet will be organized for up to 3 days with participation upto
50 buyers and 50 artisans
Financial assistance to the tune of INR 15 Lakh will be permissible towards buyer seller
meet.

Buyers sellers meet abroad and reverse buyer seller meet in India

Since small exporting units cannot afford to participate in International Fairs organized in

26. India & abroad on their own, it is proposed to fund the umbrella organizations mentioned
in the eligibility clause for organizing International Handicrafts Trade Fair/buyers sellers-
meets in India and abroad. The meet will be organized for up to 3-5 days. The funding shall
on actual subject to a maximum INR 50 Lakh.

Marketing Workshops
Marketing workshops will be organized at National/State/Local level departmental^ to
discuss various problems faced in handicrafts sector with artisans and experts in relevant
fields like designer, technologist, exporters, buyers and financial institution etc. The
workshops will be held for a minimum of 2 days.


In addition to the above department and the Board also helps in promotion and
advertisement of the Indian Handicraft products.

Let’s understand some market trends in diagrammatical forms.



















Australia
2%
Canada
3%
France
5%
Germany
11%
Italy
4%
Japan
4%
Netherlands
3%
Saudi Arabia
2%
Switzerland
1%
U.S.A.
32%
U.K.
11%
Others
22%
Major Destinations for Indian Handicrafts
(% share)

27. 69
151
205
466
164
171 117
108
57
1440
453
954
79
177
235
536
190
195
135 122
68
1642
539
1139
0
200
400
600
800
1000
1200
1400
1600
1800
Rs. in Crores
Countrywise Export of Handicrafts
Birthday
36%
Christmas
17%
Visit to friends/family
10%
No Special Occasion
9%
Easter
7%
Thank You
4%
Others
17%
Occasions for which gift items are often purchased

28. Handicraft sector has a lot of possibilities and can play a key role in economic as well as
cultural development of the country. It is best way to exchange culture and create
togetherness among the world community. Since, this sector is still unregulated and facing
lack of proper polices. In the recent years the Government of India with its various schemes
shows its motive to promote and build this sector as an important one in the economic
development of the country.

To avail the benefits of the schemes, the eligibility criteria is being prescribed along the
respective schemes and the method and way to avail the benefits. Any organization which
fulfill the criteria can apply for the benefits by filing application in the prescribed performa.

As we have observed that the very few benefits have been given or allowed to be availed
by a simple private/public company. In company form Producer Company and Section 8
Company i.e. NPO are being allowed for the benefits. So, it is prudent if the management
of the company starts the business of handicraft through any NGO or trust and do the
export and import business in the already registered company. Alternatively, company
may convert its existing company into a Section 8 Company.